marcs wrote: ↑Sun Jan 02, 2022 5:06 pm The transaction costs in selling your wine are very significant compared to stocks or bonds though. It seems perfectly possible for stocks to go down 5% and wine to go up 10% in the short run but the net loss from selling your wine would be greater than the loss from selling stocks (for example if the transaction cost of selling the wine was 20% vs basically zero for stocks).
Then in the long run only a small subset of wines have ever beaten stocks in terms of appreciation.
I also believe that wine prices are correlated with the stock market to some degree, even though people tend to claim strong diversification
There are no transaction costs at the top end of the market. And that should be your focus if you are buying for investment. There are ancillary costs to investing in wine, insurance, storage, sales tax etc, but selling isn’t one of them.
If you look at the hammer prices at auction recently, they are pretty close to retail. And at top end of the market, they are crying out for product. In fact, in the last auction of my wine, which took place in 2019, before the run up in prices, and the even greater shortage of wine, I received 8% of the buyers commission, paid zero percent to sell and they even picked up insurance and transport. There are risks and things may change, but if as I said, you are buying for investment, you are NOT paying 20%.